Figure 9-1

-Refer to Figure 9-1.What would a shift from SRAS₀ to SRAS₁ result in?
A)a decrease in unemployment in the short run
B)an increase in real gross domestic product in the short run
C)an increase in the price level in the short run
D)demand-pull inflation

Question

Figure 9-1
 
-Refer to Figure 9-1.What would a shift from SRAS₀ to SRAS₁ result in?
A)a decrease in unemployment in the short run 
B)an increase in real gross domestic product in the short run 
C)an increase in the price level in the short run 
D)demand-pull inflation

Quizplus · Accepted Answer

A shift from SRAS₀ to SRAS₁ results in an increase in the price level in the short run. This is because the shift represents a decrease in aggregate supply, which leads to higher prices and potentially lower real GDP. Option A and B are incorrect because the shift in SRAS does not necessarily indicate a change in unemployment or real GDP. Option D is incorrect because demand-pull inflation is caused by an increase in aggregate demand, not a decrease in aggregate supply.

Figure 9-1 -Refer to Figure 9-1.What Would a Shift from SRAS₀ to Shift